Ever-changing global markets provide a diverse range of investment opportunities, which makes it more challenging to keep up with or even to tap into alternative options. We at BAO look at markets from a different perspective with an aim to help broaden your investment horizon.
According to the China Global Investment Tracker, the value of China’s overseas investment and construction industries combined since 2005 amounted to over $2 trillion. The rapid development of China’s foreign investment is an inevitable result of the robust economic development, international financial management and focussed strategies of China’s wealthy family groups.
China is opening up its global investments to the whole world. Its portfolio has diversified over the last decade, from the energy and logistics sectors in Europe to the construction of infrastructure in Africa. Chinese investors are expanding the boundaries of financial investment in new directions. However, there are still unexplored waters where Chinese investors have not yet sailed. Cyprus is one such territory that offers a strategic location at the crossroads between the EU, the Middle East and Africa. It has a robust and rigorous regulatory framework and a transparent system based on Common Law, which results in it being one of the most favourable tax regimes in the EU and one of the fastest-growing investment fund centres. The government of Cyprus makes continuous efforts to ensure Cyprus remains an ideal domicile for the global investment fund and asset management industry.
As a way of proving this, in 2018, changes in legislation were adopted and Registered Alternative Investment Funds (RAIF) were introduced. BAO Capital Partners offers the RAIF solution which is a hybrid legal structure that combines the elements of authority and regulation. Among the notable advantages of RAIF is the potential to structure them in the same way as an AIF, and to market the units of the RAIF to investors in other EU member states. RAIF benefits from the European Passport, allowing businesses invested in the fund to be marketed in all EU countries; RAIF allows for diversification, consisting of an umbrella fund with multiple facets.
Another appealing aspect of Cyprus is the Cyprus Citizenship Investment Programme, which is very popular. By investing in various projects, qualified investors can obtain Cypriot citizenship within a short period of time, with the passport ranking 8th in the world and enabling visa-free travel to 173 countries. (Source: Global Passport Power Rank)
In addition, emerging markets like India with its dynamically growing economy may offer investors higher yields than assets in developed countries.
Because private consumption makes up 55% of India's GDP, the increase in discretionary spending supported by the government has had a positive impact on India’s economy. Therefore, investors can benefit from the growth in GDP and its resulting impact on specific sectors of the economy by investing inequities. There are funds in India like the BAO Value Fund, which invest in a diversified portfolio of equities and equity derivatives and thus provide superior returns to investors through long-term capital growth.
If we look further to the south to Mauritius, we find an ideal gateway between Asia and Africa, which acts as a regional business hub due to its market access, stability and business climate. With its favourable tax regime, stable legal framework, 45 Investment Promotion and Protection Agreements (IPPAs) and 50 Double Taxation Agreements (DTAs) with other countries, Mauritius give Chinese investors opportunities to expand their business to the US and EU using well-designed structures. In addition, Mauritius is an ideal place to outsource business, as it offers qualitative and cost-effective business consulting and accounting services.
Chinese investors have actively expanded their overseas footprint in recent years and explored investments in a range of sectors, diversifying their geographic markets and revenue streams. Nevertheless, the investment world offers such a wide array of untapped and uncharted opportunities. Thus, it is vital to see the whole spectrum of resourceful investment solutions in order to achieve one’s financial goals.
Explore more investment prospects with BAO on www.baofinancialgroup.com
